Trump's Tariff Revenue: What's the Government Doing with It?

The US government collected $30 billion in tariff revenue last month, a 242% increase compared to last July, bringing the total to $100 billion since April. Trump has floated two options for the revenue: paying down the government's debt or sending "tariff rebate checks" to Americans. While neither has occurred yet, the revenue goes into the Treasury Department's general fund, which is used to pay the government's bills. The government borrows money to make up for budget deficits, with a total debt of over $36 trillion.

The US government collected $30 billion in tariff revenue last month, marking a 242% increase compared to the same period last year. This surge brings the total tariff revenue to $100 billion since April, according to the Treasury Department [1]. President Donald Trump has floated two options for this revenue: paying down the government's debt or sending "tariff rebate checks" to Americans.

Trump's sweeping tariff policies, implemented in early April, have generated significant revenue for the US government. The new rates, which were set to go into effect last week, have been met with mixed reactions. While some businesses and consumers have expressed concerns about potential price increases, the administration has maintained that the tariffs will bring in billions of dollars annually in new revenue [2].

The government's general fund, which receives the tariff revenue, is used to pay for various government expenses. However, the US government's debt stands at over $36 trillion, according to the latest data from the Treasury Department [3]. Trump has suggested that the tariff revenue could be used to reduce the national debt, a goal he has emphasized during his presidency.

In addition to paying down debt, Trump has floated the idea of sending "tariff rebate checks" to Americans. The proposal, which was first mentioned in February, would provide a dividend to middle- and lower-income Americans. The specifics of the rebate checks, including the amount and the income threshold, are still under consideration [3].

Senator Josh Hawley, a Missouri Republican, has introduced a bill that would provide $600 per adult and dependent child, or $2,400 for a family of four. The checks would be reduced by 5% for joint filers with an adjusted gross income above $150,000 or single filers earning more than $75,000 [2].

The future of the tariff rebate checks remains uncertain. While Trump has expressed support for the idea, it is not clear whether the bill will gain enough support from fellow Republicans to pass. The government continues to borrow money to cover budget deficits, and the impact of the tariffs on inflation remains a concern for many economists.

References:
[1] https://www.ainvest.com/news/embraer-invest-1-billion-tariff-uncertainty-2508/
[2] https://www.livenowfox.com/news/tariff-rebate-checks-trump-josh-hawley
[3] https://spectrumlocalnews.com/me/maine/news/2025/08/04/trump-floats-tariff-rebate-checks-for-americans-of-certain-income-levels-as-new-rates-set-to-take-effect-this-week